RBI action: Now customers of this bank will not be able to withdraw money, check details

In view of the deteriorating financial condition of Maharashtra-based Shirpur Merchants Cooperative Bank, the Reserve Bank of India (RBI) on Monday banned several services including withdrawals from accounts. The Reserve Bank has taken this step in view of the current financial condition of Shirpur Merchants Cooperative Bank. In this, no amount can be allowed to be withdrawn from the total balance in all the savings bank or current accounts or any other account of the depositor. However, according to these terms and conditions of the Reserve Bank, bank customers will be able to repay the loan from the amount deposited in their account.

What did RBI say?

RBI said in a statement that after the close of business on Monday, this cooperative bank will not be able to give any new loan nor make any investment. Along with this, the bank will also not be allowed to transfer or dispose of its property or assets without the prior permission of the central bank.

What will happen to the customers?

RBI said eligible depositors will be entitled to receive deposit insurance claim amount up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC). The ban imposed on Shirpur Merchants Co-operative Bank for closure of business on April 8, 2024 will remain in force for six months. However, the Reserve Bank said that these instructions should not be understood as cancellation of the license of the bank. It said the bank will continue to conduct banking business with these restrictions until its financial position improves.